Business
Uganda’s trade deficit with EAC partner states hits sh1.71 trillion
The Ministry of Finance's performance of the economy report for August 2026 indicates that this deterioration was on account of an 85.5% surge in the import bill and a simultaneous 9.7% decline in exports to the region.
Uganda’s trade deficit with EAC partner states hits sh1.71 trillion
By: Umaru Kashaka, Journalist @New Vision
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Uganda traded at a deficit worth $436.68 million (about sh1.71 trillion) with the East African Community (EAC) partner states in July 2026, a significant deterioration when compared with the trade deficit of $54.49 million (about sh213 billion) recorded in July 2025, says a new report.
The Ministry of Finance's performance of the economy report for August 2026 indicates that this deterioration was on account of an 85.5% surge in the import bill and a simultaneous 9.7% decline in exports to the region.
Conversely, on a month-on-month basis, Uganda’s trade deficit narrowed from $505.84 million in June 2026 to $436.68 million in July 2026, on account of a decline in imports, which more than offset the decline in exports.
A trade deficit occurs when a country imports (buys) more physical products from other countries than it exports (sells) to them.
A trade deficit occurs when a country imports (buys) more physical products from other countries than it exports (sells) to them.
At a country-specific level, Uganda traded at a surplus with the DR Congo, South Sudan and Rwanda worth $120.51 million, $79.74 million and $25.64 million in July 2026.
On the other hand, deficits were recorded with Kenya, Burundi and Tanzania amounting to $432.62 million, $139.02 million and $90.93 million, respectively, over the same period.
Uganda imported merchandise worth $737.46 million from the three countries, compared to exports of $74.89 million.
“Uganda’s export earnings from these markets therefore amounted to approximately one-tenth of the value of its import bill from the three partner states. The deficit with Kenya and Tanzania is partly explained by the non-tariff trade barriers that exist,” says the report.
On the other hand, deficits were recorded with Kenya, Burundi and Tanzania amounting to $432.62 million, $139.02 million and $90.93 million, respectively, over the same period.
Uganda imported merchandise worth $737.46 million from the three countries, compared to exports of $74.89 million.
“Uganda’s export earnings from these markets therefore amounted to approximately one-tenth of the value of its import bill from the three partner states. The deficit with Kenya and Tanzania is partly explained by the non-tariff trade barriers that exist,” says the report.